Bills Bird House Bonanza

The following information relates to the manufacturing plant of Bills Bird House Bonanza:

Inventory Values                                           September1                September 30

Direct Materials for bird houses                    122,200                    115,500

Work In Progress of bird houses                    200,000                      225,500

Finished and Complete bird houses               140,400                      125,500

Production Data for the Month of September:

Direct Labor for bird house production                     275,500

Anticipated Actual Factory Overhead December 31             200,200

Direct Materials Purchased                                        234,400

Bills Bird House Bonanza uses one factory over-head account and applies factory overhead to production at 70% of direct labor cost. Over-and-Under applied overhead is not recognized until year-end.

Required:

What is the total manufacturing cost for month of September for Bills Bird House Bonanza?

1. TYU Inc. has a profit margin of 8.3 percent and a payout ratio of 42 percent. The firm has annual sales of $386,400, current liabilities of $37,200, long-term debt of $123,800, and net working capital of $16,700, and net fixed assets of $391,500. No external equity financing is possible. What is the internal growth rate?

2.  Jump Company., has annual sales of $40,934, depreciation of $3,100, interest paid of $750, cost of goods sold of $22,400, taxes of $3,084, and dividends paid of $4,060. The firm has total assets of $55,300 and total debt of $32,600. The firm wants to maintain a constant payout ratio but does not want to incur any additional external financing. What is the firm's maximum rate of growth?     

Kuzma​ Foods, Inc. has budgeted sales for June and July at $690,000 and $745,000​, respectively. Sales are 80​% ​credit, of which 70​% is collected in the month of sale and 30​% is collected in the following month. What is the budgeted Accounts Receivable balance on July​ 31?

A. 596,000

B. 223,500

C. 165,600

D. 178,800

Journalize Bennett Enterprises’ entries to record: the issuance of the note. the payment of the note at maturity. 1. Inventory 540,000 Notes Payable 540,000 2. Notes Payable 540,000 Interest Expense 6,075 Cash 546,075 Feedback b. Journalize Spectrum Industries’ entries to record: the receipt of the note. the receipt of the payment of the note at maturity. 1. Notes Receivable Sales 2. Cash Notes Receivable Interest Revenue

Imagine that you are preparing taxes for a local tax service provider. A married couple named Judy and Walter Townson has come to you to seeking assistance with their federal income taxes. During your meeting with the Townsons, you gather the following information:

-they are both 55 years of age
-They have two daughters and one son. One daughter (25) is married with children. One daughter (20) is living at home and attending college. Their son (16) is a junior in high school.
-They are currently paying for their college-student daughter to attend school full time.
- Judy is employed as a teacher and makes $60,000 a year. She used $500 of her personal funds to purchase books and other supplies for her classroom.
-Walter is employed as a CPA and makes $100,000 a year
- They provided you a 1099-INT which reported $4,500 in the interest of which $500 was saving bonds interest
- They offered you a 1099-DV which said $300 in dividends
-They received a state tax refund last year of $385
- They provided you a list of expenses including: doctors bill $800, Prescriptions $400, New glasses $2000, dental bills $560, braces $5000, Property taxes for their two cars of $800, which included $50 in decal fees, real estate taxes $4500, mortgage interest $12000, Gifts to charities $1,000, GoFunMe contribution to local families in need $100, and Taxes preparation fees for last years taxes $400.

Consider the most beneficial way for Judy and Walter to file their federal income tax return. Prepare a brief written summary that addresses the following:

-Estimated taxable income for Judy and Walter (please show compilations)
-Summary of tax return, including andy suggestions or tax planning consideration
- Explain how you determined the filing status, dependents, and use of standard/ itemized deduction

The specific course learning outcomes associated with this assignment are:

1. Review tax authories and sources of tax law
2. Assess the concepts of gross income and strategies to minimize gross income
3. Examine deductions from income, limitations on those deductions, and strategies for maximizing deductions.

Comprehensive Accounting Cycle Review 5-2 (Part Level Submission)

On November 1, 2017, Teal Mountain Inc. had the following account balances. The company uses the perpetual inventory method.

During November, the following summary transactions were completed.

(c)

Post to the ledger accounts. (Post entries in the order of journal entries presented in the previous part.)

Markowis Corp. has collected the following data concerning its maintenance costs for the past 6 months. Units Produced Total Cost July 18,054 $36,108 August 32,096 48,144 September 36,108 55,165 October 22,066 38,114 November 40,120 74,724 December 38,114 62,186 Collapse question part (a1) Incorrect answer. Your answer is incorrect. Try again. Compute the variable cost per unit using the high-low method. (Round variable cost per mile to 2 decimal places e.g. 1.25.) Variable cost per unit $Entry field with incorrect answer Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor. Attempts: 2 of 2 used Point Potential is enabled You have surpassed the number of attempts to earn Maximum Points for this question. For this attempt, and any subsequent attempt(s), you will earn points according to the Point Potential policy set by your instructor. Collapse question part (a2) Compute the fixed cost elements using the high-low method. Fixed costs $

Janenda Inc. issued $5,000,000 of convertible

5-year bonds on July 1, 2017. The bonds provide for 6% interest payable semiamuially on January 1 and July 1. The discount in

connection with the issue was $120,000, which is being amortized monthly on a straight-line basis.

The bonds are convertible after one year into 15 shares of Janenda Inc.’s $1 par value common stock for each $1,000 of bonds.

On October 1, 2018, $600,000 of bonds were turned in for conversion into common stock. Interest has been accrued monthly

and paid as due. At the time of conversion, any accrued interest on bonds being converted is paid in cash.

Instructions

Instructions

Prepare the journal entries to record the conversion, amortization, and interest in connection with the bonds as of the following

dates. (Round to the nearest dollar.)

(a) October 1, 2018. (Assume the book value method is used.)

(b) October 31, 2018.

(c) December 31, 2018, including closing entries for end-of-year.

Greener Grass Fertilizer Company plans to sell 250,000 units of finished product in July and anticipates a growth rate in sales of 5 percent per month. The desired monthly ending inventory in units of finished product is 80 percent of the next month’s estimated sales. There are 200,000 finished units in inventory on June 30. Each unit of finished product requires 5 pounds of raw material at a cost of $1.75 per pound. There are 780,000 pounds of raw material in inventory on June 30.

Required:

1. Compute the company’s total required production in units of finished product for the entire three-month period ending September 30. (Round all intermediate calculations and your final answer to the nearest unit.)

2. Independent of your answer to requirement (1), assume the company plans to produce 680,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire three-month period ending September 30.

Example 6-2 John Jenkins earns $1,290 per week. The deductions from his pay were: FIT $116.00 FICA—OASDI 79.98 FICA—HI 18.71 State income tax 31.00 State disability insurance 9.03 Credit union deduction 40.00 Health insurance premium 47.50 Charitable contribution 5.00 John’s disposable earnings would be: $1,290.00 - $116.00 (FIT) - $79.98 - $18.71 (FICA deductions) - $31.00 (SIT) - $9.03 (disability insurance) = $1,035.28 Example 6-3 Huffman Company has a child support order outstanding on one of its employees (Charles Suffert—$170 per week). Charles Suffert's disposable income is $950 per week. A new garnishment is received for a $5,000 debt to a credit card company. The company would take an additional $237.50 out of Suffert's pay. Lesser of: 25% × $950 = $237.50 or $950 − (30 × $7.25) = $732.50 Kalen O'Brien earned $735 this week. The deductions from her pay were as follows: FIT $74.00 FICA-OASDI 45.57 FICA-HI 10.66 State income tax 36.75 State disability insurance 8.41 Health insurance premium 19.60 Credit union contribution 37.00 United Fund contribution 5.00 O'Brien's employer just received a garnishment order (credit card debt of $3,330) against her pay. Compute the following; round your answers to the nearest cent. a. O'Brien's disposable earnings: $ b. The amount of her pay subject to the garnishment: $

Car and Truck Expense. (Obj. 3)Keith is self-employed. During 2018, he drove his car a total of 9,169 miles for work. He drove a total of 21,468 miles during the year. His car expenses for the year were as follows.

Business parking and tolls 360

Depreciation 1475

Gas 2557

Insurance 940

License tags 50

Repairs and maintenance 52

5434

a. Compute Keith’s car expense deduction using the standard mileage rate.

b. Compute Keith’s car expense deduction using the actual cost method.

1. Identify tools for analyzing financial statements and ratios for computing a company's profitability. (Please don't plagiarize)

A standard unqualified audit opinion states that financial statements “present fairly” a company’s results “in accordance with generally accepted accounting principles.” Does following GAAP necessarily “present fairly” a company’s operating results?

1) State and discuss you answer. Provide examples to support your opinion.
What should a company do if following GAAP does not “present fairly” its operating results?

2) Write a clear and concise response to the above question.

Case Study 2 – Auditing ACCT3000 (Semester 2, 2019)
You are an Audit Senior currently planning the 30 June 20X9 audit of Technology Limited, an Australian-owned company that produces and exports computer chips to China. At a recent planning meeting with Technology Limited’s senior staff, you obtained the following overview of this year’s operations:
Tight checks by Australian custom officials have delayed several shipments of computer chips. These delays have angered Chinese customers who are threatening to deduct 20% from the amounts owing as compensation for lost production time.
One of Technology Limited’s customers, Blue Chip Limited, is claiming that the latest batch of computer chips it received was found to be faulty. Blue Chip Limited is refusing to pay its account, which is allegedly seven months overdue. Technology Limited has claimed to have launched an investigation into the allegations, but as yet not been able to substantiate them. Technology Limited has suffered significant cash flow problems because another major customer, Creative Limited (Creative), is experiencing financial difficulties. As a result, Creative is taking well over 120 days to pay outstanding amounts, despite Creative’s terms of trade being payment within 30 days. Creative makes up 40 per cent of Technology Limited’s sales and the board has been reluctant to take any action that might adversely affect those sales. Consequently, Technology Limited has had to increase its dependency on its line of credit, and this has caused it to temporarily breach the debt to equity ratio required in its loan covenant with Big Bank Limited.
One of Technology Limited’s major suppliers went bankrupt one month ago, causing major product shortages. To overcome the problem, Peter James, the husband of the finance director, Natalie James, provided electronic components used in the production of computer chips to Technology Limited through his private company Norton Limited. Norton Limited demands payment in $US prior to the electronic components being supplied. There is no formal agreement in place with Peter James, however, the goods are being provided at competitive prices. You are concerned about the electronic components that Peter James’ company is supplying, because his products are new to the market and you have heard some of Technology Limited’s staff complaining that they are of poor quality.
Due to increased competitive pressure, Technology Limited has recently moved the manufacture of some of its computer chips to Bangladesh. Technology Limited saves around 25 per cent in costs compared to the equivalent Australian made items. However, the manufacturing process takes longer and on a few occasions late delivery from Bangladesh has resulted in lost sales.
Last month, a protester suffered a broken leg, allegedly because he was hit by a company truck. The protester is now suing Technology Limited for damages, claiming the contractor was in fact an employee of Technology Limited at the time of the accident, and was acting on Technology Limited’s instructions. Technology Limited is fighting the case and appears to have a reasonable chance of winning; however, the adverse publicity being generated is making the company nervous about its sales in the future.
During the period, the Australian dollar has remained steady against the Chinese Yuan, although it fell by about 3% against the US dollar. Debtors are invoiced in $US at the time of shipment, and payment is received in $US one month after the shipment is delivered. It takes around six weeks for the charter vessels to travel from Technology Limited’s shipyard at Bigmantle Bay to China. A recent downturn in the Chinese economy is affecting forward orders, which have fallen by 15%.
Required:
Prepare a memorandum to the audit manager, outlining your risk assessment relating to Technology
Limited. When making your risk assessment:
(a) Identify two (2) balance sheet accounts from the information provided that are subjected
to an increase in audit risk. Briefly explain what factors increase the audit risk associated
with the two (2) account balances identified. In your explanation, please mention the key
assertion(s) at risk of material misstatement and the components of the audit risk model
affected for each account balance identified.
(b) Identify how the audit plan will be affected and recommend specific audit procedures to
address the risks associated with each account balance identified.
(Please Note – Maximum Word Limit: 800 Words excluding references)